Technical analysis: Will the AUD/USD retreat continue?

Dmitry Lukashov IFC Markets

Recommendation for AUD/USD: Sell

Sell Stop: Below 0.7324

Stop Loss: Above 0.7363

Indicator	Value	Signal
RSI		Neutral
MACD		Sell
Donchian Channel		Sell
MA(200)		Buy
Fractals		Sell
Parabolic SAR		Sell

Chart Analysis

On 1-hour timeframe AUDUSD: H1 is retracing under the 200-period moving average MA(200) which has leveled off. We believe the bearish movement will continue after the price breaches below the lower bound of the Donchian channel at 0.7324. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 0.7363. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Australia's construction activity fell in Q3 more than expected. Will the AUDUSD retreat continue?

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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